​Question:We are doing a land loan that will have a house built in the next year on it. The loan we originate will just be secured by land. The proceeds to build the home in the future will be from another loan. Should pull a Flood Determination?

Answer:If the bank is just originating a loan that will only be secured by land, then it is not required to pull a flood determination. The bank would need to pull a flood determination when it’s time to do the other loan that will be secured by the home. At that time you would treat it like a construction loan in regards to flood.